PS5 Inc. had 8 million shares of common stock outstanding during the current calendar year. On July 1, PS5 issued

PS5 Inc. had 8 million shares of common stock outstanding during the current calendar year. On July 1, PS5 issued ten thousand $1,000 face value, convertible bonds. Each bond is convertible into 50 shares of common stock. The bonds were issued at face amount and pay interest semi-annually for 20 years. They have a stated rate of 12%. PS5 had income before tax of $24 million and a net income of $18 million.

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What would PS5 report?

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